Beijing offers Baby Loans – CHINA’S ENIGMA?

China is famous for giving loans world over from Sri Lanka to Africa. But the most populous country of the world which once ruthlessly implemented the notorious one child policy to keep its huge population under control, is now offering liberal loans and many other lucrative incentives to married couples if they have kids and more kids!

Despite revoking the dreaded one child policy of Deng Xiaoping to implementing a third child by Xi Jinping, China has had continuous old low birth rates resulting in an aging population not suitable for its voracious economy. And hence the incentive loans and other incentives. China needs more children (in form of young work force as well as consumers) to defuse a demographic time bomb that threatens to derail Xi’s ambitions to double the Chinese economy by 2035. China’s census data showed that its population growth slipped to its slowest rate since the 1950s.